Compare Payoneer vs TransferWise: Fees, Exchange Rates & Speed

Subject: Compare Payoneer vs TransferWise: Fees, Rates & Speed

Transferring funds across borders has become considerably simpler and definitely more cost effective because of how the Internet has evolved. One drawback, though, is sifting through the plethora of options and choosing the right service provider. If you, like many others, are wondering if you should use TransferWise or Payoneer for your next funds transfer, reading this page till the end will work well for you.

Side By Side

TRANSFERWISE PAYONEER
Offices in the UK, the U.S., Estonia, Belgium, Hungary, Ukraine, United Arab Emirates, Malaysia, Singapore, Australia, and Japan Offices in the U.S., the UK, Spain, India, Israel, Hong Kong, the Philippines, and Japan

 

Lets you transfers directly to overseas bank accounts Allows transfers only to other Payoneer accounts

 

Exchange rates are very close to mid-market rates Adds currency conversion charge of 2% to 2.75% in some countries
Charges nominal fees to make payments Making payments is fee-free
Borderless Account comes with no account keeping fees Need to pay monthly account keeping fees
Receiving accounts in USD, GBP, EUR, PLN, AUD, and NZD Receiving accounts in USD, CAD, GBP, EUR, MXN, AUD, JPY, and CNY
Check the list of supported countries online Supports transfers in around 150 currencies to more than 200 countries
Serves individuals, businesses, and online sellers Serves individuals, businesses, and online sellers
Provides only spot transfers Provides only spot transfers

While online reviews of TransferWise are largely positive, you’ll find mixed reviews when it comes to Payoneer. However, this does not imply that you blindly favor the former over the latter. While both companies offer similar services, there are differences you need to be aware of as well.

This Payoneer vs. TransferWise comparison delves into different aspects so you can make an informed decision.

  • Exchange Rates
  • Fees
  • Multi-Currency Bank Accounts
  • Debit /Travel Cards
  • Countries
  • Ease of Use
  • Security
  • Regular Overseas Payments
  • Coupons

Exchange Rates

Whether you go with Payoneer or TransferWise, you can be certain of getting bank-beating rates. There is no clear winner between the two given the fluctuations that the market deals with on a regular basis. As a result, compare the rates both companies offer just before your transfer.

TransferWise

  • You may use the currency calculator on the TransferWise homepage to check existing exchange rates.
  • The company’s mid-market rates remain in close proximity to prevailing market rates.
  • You can sign up for free rate alerts.
  • The website lets you view exchange rate fluctuations.

Payoneer

  • Existing mid-market rates determine exchange rates you will get from Payoneer.
  • The company applies a 2% to 2.75% currency conversion charge in some countries.
  • You get to know of the exchange rate before you finalize your transfer.
  • If you use the prepaid MasterCard provided by Payoneer in a non-listed currency, you’ll be subject to exchange rates that MasterCard offers.

TranferWise Live Price Calculator

Fees

There is no frontrunner in this section of the TransferWise vs. Payoneer comparison because both companies follow different fee structures.

TransferWise

  • You’ll need to pay a percentage of the amount you transfer as fees.
  • The transfer amount and the destination country have a bearing on how much your transfer will cost.
  • You can get additional details by checking the TransferWise fee breakdown table.
  • The TransferWise Borderless account comes with no fees for account keeping, providing bank details, adding funds, and receiving money. Converting funds and withdrawing money to a bank account attract fees.

Payoneer

  • Payoneer lets you make fee-free payments.
  • You will need to pay a fee when withdrawing funds from your Payoneer account to a local bank account – the fee depends on the currencies involved.
  • A currency conversion charge of up to 2.5% might apply when you use the prepaid MasterCard in a non-listed currency.
  • Receiving funds from other Payoneer customers through the company’s Make a Payment service does not attract any fees
  • Receiving funds through the Global Payment Service requires that you pay a 1% fee.
  • The Billing service for online sellers charges 3% for payments made using credit cards. A 1% fee applies if you receive eChecks in U.S. dollars.
  • The company provides its detailed fee policy online.

Multi-Currency Bank Accounts

No matter whether you select TransferWise or Payoneer, you get access to receiving accounts in different currencies.

TransferWise

Through TransferWise, you get free receiving accounts in USD, GBP, EUR, PLN, AUD, and NZD

You need to include TransferWise FBOs for wire and SWIFT transfers to USD bank details

TransferWise does not offer the Borderless Account to residents of the American states of Hawaii and Nevada yet

The Borderless Account is not available to residents of:

  • Afghanistan
  • Brazil
  • Burundi
  • Central African Republic
  • Chad
  • Congo Republic
  • Crimea (sub-territory)
  • Cuba
  • Democratic Republic of the Congo
  • Eritrea
  • Hong Kong
  • India
  • Iran
  • Iraq
  • Japan
  • Libya
  • North Korea
  • Sevastopol (city)
  • Somalia
  • Republic of South Sudan
  • Sudan
  • Syrian Arab Republic
  • You may check if your country is supported to get USD Borderless account online
  • The account lets you hold funds and transact in more than 50 currencies
  • Setting up direct debits in GBP and EUR is easy
  • You pay no fees for opening an account, ongoing maintenance, or receiving international payments
  • Lets you receive payouts from Stripe and Amazon for free

Payoneer

  • Payoneer provides receiving accounts in USD, CAD, GBP, EUR, MXN, AUD, JPY, and CNY through its Global Payment Service
  • Receive funds from mass payout partners such as Amazon, Upwork, Airbnb, and Fiverr easily
  • Use the Billing Service to pay other Payoneer users
  • You pay a 1% fee for every payment you receive in USD
  • You pay no fees for receiving payments received in EUR, GBP, and JPY
  • You need to pay a monthly fee to maintain your account

Debit /Travel Cards

You may sign up with either Payoneer or TransferWise and look forward to accessing money in your account by using a prepaid card.

TransferWise

  • The company provides a prepaid Mastercard linked to its Borderless Account for residents of the UK, the EEA (except Greece), Switzerland, the U.S., Singapore, Australia, and New Zealand
  • You get free ATM withdrawals of up to £200 every 30 days
  • When you convert currencies, nominal fees apply

Payoneer

  • Depending on where you live, Payoneer gives you access to a prepaid Mastercard
  • The card may come with spending and withdrawal limits
  • You need to pay an annual card maintenance fee
  • ATM fees and currency conversion fees may apply

Countries

This aspect may play a role in whether you should go with TransferWise or Payoneer, especially if you want to transfer funds to a troubled or relatively unknown country, or if you want to transfer an exotic currency

  • TransferWise accepts customers from most countries and you can find the complete list of supported countries online.
  • Payoneer offers it services in more than 200 countries and deals in over 150 currencies.

Ease of Use

Both companies are largely at par in this section of the Payoneer vs. TransferWise review. Registering and initiating transfers is easy no matter which one you choose.

TransferWise

  • You may use your Google or Facebook account to simplify the registration process.
  • You can register as an individual or a business.
  • You can use the website in English, French, German, Hungarian, Italian, Japanese, Portuguese, Russian, and Spanish.
  • TransferWise lets you pay for your transfer using electronic bank transfers as well as debit and credit cards.
  • With the TransferWise Borderless account, you get bank account details to receive funds locally in the Australia, U.S., the UK, and the European Union. You can hold and manage your funds in more than 40 currencies.
  • The company provides apps for devices that run on iOS and Android.

Payoneer

  • Payoneer offers services to businesses and online sellers. Individuals can use it to get paid.
  • It offers a multilingual website in languages such as Arabic, Korean, Japanese, Russian, Spanish, and Vietnamese.
  • You can use a credit card to pay existing Payoneer users using the Payoneer Billing Service. If you live in the U.S., you can make payments via eChecks.
  • Businesses from the U.S., the UK, the European Union, and Japan can make payments to existing Payoneer users using local bank transfers, credit cards, and eChecks.
  • You can view further details about Payoneer payment options online.
  • The company provides apps for iOS and Android.
  • Payoneer offers receiving accounts in USD, EUR, GBP, JPY, AUD, CAD & CNY

Security

You may use Payoneer or TransferWise without worrying about safety of your funds or your personal information. Both companies rely on high encryption levels to keep their websites secure.

TransferWise

  • UK-based TransferWise is authorized and regulated by the Financial Conduct Authority (FCA).
  • In the U.S., the TransferWise program is sponsored by the Community Federal Savings Bank. In some states, the company operates as a licensed money transmitter.

Payoneer

  • Payoneer is authorized and regulated by the Gibraltar Financial Services Commission (GFSC) or the First Covenant Bank (member FDIC), in accordance to a license by MasterCard.
  • Choice Bank Limited, Wirecard Card Solutions Ltd (WDCS) issues the Payoneer Prepaid MasterCard.

Regular Overseas Payments

Both companies falter in this section of the TransferWise vs. Payoneer comparison by not offering this feature. If you want to schedule transfers, consider looking at what OFX, HiFX, TorFX, and Currencies Direct have to offer.

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